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How Harshad Mehta Became So Rich: The Story of a Controversial Investor

How Harshad Mehta Became So Rich


In today’s blog, we’re diving into the intriguing world of Harshad Mehta, a name that stirs up various opinions. Some view him as a fraud, others as a hero, but one thing is clear: he was an exceptional investor. This post is inspired by a discussion with Jyoti Mehta and will explore Harshad Mehta’s investment strategy that led him to amass significant wealth, using the key phrase “How Harshad Mehta Became So Rich” throughout our journey.

The Early Days and the Big Strategy

It all started in 1991, during a severe financial crunch in India, akin to recent economic troubles in Pakistan and Sri Lanka. India was on the brink of bankruptcy, but Harshad Mehta saw a golden opportunity. He believed that the Indian government would have no choice but to open up the economy, which would boost the stock market and benefit fixed income securities.

The Dream Gate Opens

During this crisis, Harshad Mehta and his team of skilled CAs and MBAs began to identify fundamentally strong companies. “How Harshad Mehta Became So Rich” stems from his ability to foresee that once the economy opened, these companies would thrive. From April 1991 to April 1992, through meticulous planning and strategic buying, he acquired a substantial amount of stocks, which was not enough to manipulate the market as some have suggested, but significant nonetheless.

Key Investments and Outcomes

Jyoti Mehta highlighted that the stocks Harshad chose always showed positive returns. Companies like ACC, Ambuja, and ICICI Bank were part of his portfolio. His investment thesis was based on the “Replacement Cost Theory,” which argues that if a company had to rebuild its assets today, it would cost much more due to inflation, making current stock prices undervalued. This insight explains “How Harshad Mehta Became So Rich” by capitalizing on undervalued stocks.

The Impact of Economic Reforms

The 1992 budget, which liberalized the Indian economy, was a turning point. Harshad Mehta had positioned himself perfectly to benefit from these changes. His strategic foresight is a critical part of understanding “How Harshad Mehta Became So Rich.” He knew which stocks would benefit from the government’s policy changes and invested accordingly.

The Controversy and the Legacy

Despite his success, Harshad Mehta faced significant accusations, including stock manipulation. However, his wife Jyoti Mehta defends his actions, stating that the stocks he bought were based on thorough research and genuine belief in their growth potential. She also pointed out that when the market raids happened, Harshad couldn’t even trade, which challenges some of the claims made against him.

Learning from Harshad Mehta

Regardless of the controversy, the question remains: “How Harshad Mehta Became So Rich?” The answer lies in his innovative approach to investment, particularly his use of the Replacement Cost Theory. Whether one views him as a hero or a villain, his strategies provide valuable lessons on value investment and market timing.


Harshad Mehta’s story is a fascinating study of ambition, strategy, and controversy. “How Harshad Mehta Became So Rich” is not just about the wealth he accumulated but also about the insights that can be gained from his approach to the stock market. His legacy is a mix of brilliance and contention, leaving a lasting impact on how investment strategies are viewed in India.

Engage and Learn

We invite you to reflect on Harshad Mehta’s strategies. Do you think his investment approach was sound, or do you believe the criticisms hold more weight? Share your thoughts in the comments below, and let’s discuss “How Harshad Mehta Became So Rich” together!

This exploration into Harshad Mehta’s strategies aims to provide a clear understanding for all, from young enthusiasts to seasoned investors. His story is not just about stocks and economics; it’s about spotting opportunities during crises and learning from the complex world of investments.

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Our blogs are made for educational purposes only, and we do not provide investment recommendations. We are not SEBI-registered advisors and do not accept cryptocurrency payments. We present publicly available facts and data, not favoring any company.

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